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Dec 31, 2021
Vertex Q4 2021 Earnings Report
Vertex reported a revenue increase of 12.2% year-over-year, ARR growth of 17.0% year-over-year, and net revenue retention rate of 108%.
Key Takeaways
Vertex announced its Q4 and full year 2021 financial results, revealing a 12.2% increase in total revenues for the fourth quarter, reaching $111.7 million. The company's ARR grew by 17.0% year-over-year to $370.2 million, and the net revenue retention rate was 108%.
Total revenues increased by 12.2% year-over-year, reaching $111.7 million.
Software subscription revenues grew by 11.1% year-over-year, totaling $93.3 million.
Cloud revenues increased by 38.9% year-over-year, amounting to $34.7 million.
ARR reached $370.2 million, a 17.0% increase year-over-year.
Vertex
Vertex
Vertex Revenue by Segment
Revenue by Segment
Services Revenue
CapyFin.com Forward Guidance
For the first quarter of 2022, the Company currently expects revenues of $112.5 million to $113.5 million, representing growth of 15% to 16% from the first quarter of 2021; and Adjusted EBITDA of $16.0 million to $17.0 million, representing a decrease of $1.0 million to $2.0 million from the first quarter of 2021. For the full-year 2022, the Company currently expects revenues of $479 million to $483 million, representing growth of 13% to 14% from the full-year 2021; Cloud revenue growth of 33% from the full-year 2021; and Adjusted EBITDA of $72 million to $75 million, representing a decrease of $3 million to $6 million from the full-year 2021, reflecting additional spend in research and development, as well as selling and marketing expenses to drive growth.
Positive Outlook
- Revenues of $112.5 million to $113.5 million for Q1 2022, representing 15-16% growth from Q1 2021
- Full-year 2022 revenues of $479 million to $483 million, representing 13-14% growth from full-year 2021
- Cloud revenue growth of 33% from full-year 2021
- Increased operational flexibility through credit facility refinancing
- Confidence in strong footing to support operations and growth strategies
Challenges Ahead
- Adjusted EBITDA of $16.0 million to $17.0 million for Q1 2022, a decrease of $1.0 million to $2.0 million from Q1 2021
- Adjusted EBITDA of $72 million to $75 million for full-year 2022, a decrease of $3 million to $6 million from full-year 2021
- Additional spending in research and development
- Additional spending in selling and marketing expenses to drive growth
- Inability to reconcile forward-looking Adjusted EBITDA to net income (loss) due to unpredictable items